Joann Files for Bankruptcy, Secures Funding to Emerge as Private Company

• Joann, the 81-year-old fabric and craft retailer, has filed for Chapter 11 bankruptcy protection as it struggles with declining revenue.

• The company has secured $132 million in fresh funding to help reduce its debt load, which had reached $1 billion.

• Its 850 stores and website will remain open during the bankruptcy process, which it expects to complete as soon as next month.

• Joann saw a brief sales boom during the pandemic when people spent more on arts and crafts, but that demand has faded as inflation has reduced spending on non-essential items.

• The company will become privately owned after emerging from bankruptcy, and its stock has been delisted from the Nasdaq stock exchange.